Course 506:
Calculating Your Personal Rate of Return
In this course
1 Introduction
2 Reported Returns versus Personal Rates of Return
3 Calculating Your Personal Return
4 How to Do It
5 What Personal Returns Tell You

Your fund says it finished the year up 15%. The Morningstar Fund Analyst Report says the same. Yet you only made 10% on the fund for the year.

The fact is, returns depend a lot on how you calculate them. Your actual investment or personal rate of return in a fund may be better—or worse—than you think, because of the timing of your purchases and sales. Knowing your portfolio's actual returns can help you determine if you're on track to meet your investment goals, and whether your funds are living up to your expectations.

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